Location: Philadelphia-Camden-Wilmington, PA | Metro: Philadelphia-Camden-Wilmington, PA-NJ-DE-MD MSA
Based on 1% Rule: A+ (≥1.5%) | A (≥1.2%) | B (≥1.0%) | C (≥0.8%) | D (≥0.6%) | F (<0.6%)
| Unit Size | Monthly FMR |
|---|---|
| Studio | $1,430 |
| 1 Bedroom | $1,550 |
| 2 Bedrooms | $1,850 |
| 3 Bedrooms | $2,200 |
| 4 Bedrooms | $2,430 |
| 5 Bedrooms | $2,819 |
| 6 Bedrooms | $3,157 |
| 7 Bedrooms | $3,410 |
| 8 Bedrooms | $3,581 |
Zillow median home prices vs Section 8 FMR rates (Data: 2026-07-31)
| Bedrooms | Monthly FMR | Median Price | 1% Rule | Grade |
|---|---|---|---|---|
| 2BR | $1,850 | $356,406 | 0.52% | F |
| 3BR | $2,200 | $438,017 | 0.5% | F |
| 4BR | $2,430 | $620,107 | 0.39% | F |
| 5BR | $2,819 | $738,418 | 0.38% | F |
U.S. Census Bureau data (2024)
The investment landscape in ZIP code 19465, located in Pottstown, PA, presents several challenges for landlords considering participation in the Section 8 program. One significant issue is tenant turnover. The market rent in the area stands at $1,424, whereas the Fair Market Rent (FMR) for FY 2024 is $1,640. This discrepancy can lead to higher turnover rates as tenants who qualify for Section 8 may find it difficult to afford the difference between the FMR and the actual market rent.
Vacancy exposure is another concern. The days on market (DOM) for rental properties in this area is not available, which makes it challenging to predict how long a property might remain vacant. This uncertainty can pose a financial risk, especially if the landlord relies heavily on rental income.
Deferred maintenance is also a potential risk. With a typical home value of $490,184 and a median income of $107,825, landlords must be prepared for the possibility that some tenants may struggle to keep up with necessary repairs and maintenance. This could result in higher out-of-pocket costs for landlords to maintain the property's condition.
Despite these risks, there are factors that mitigate them. The renter share in Pottstown is 18.8%, indicating a relatively high concentration of renters in the area. High renter density typically correlates with higher demand for housing vouchers, such as those provided through Section 8. This demand can help stabilize occupancy rates and provide a steady stream of tenants.
In conclusion, the risks associated with Section 8 participation in ZIP code 19465 are moderate due to the combination of potential tenant turnover, vacancy exposure, and deferred maintenance costs, but these are balanced by the high renter density in the area.
Data Sources: FMR data from HUD (2027). Median home prices from Zillow (2026-07-31). Demographics from U.S. Census (2024).
About FMR: Fair Market Rent (FMR) is used to determine payment standards for the Section 8 Housing Choice Voucher program, initial renewal rents for some expiring project-based Section 8 contracts, and rent ceilings for HOME Investment Partnerships.